Trade Proof of Origin and Ease of Doing Business
The government has clarified the definition of 'proof of origin' for trade purposes to enhance the ease of doing business and prevent the misuse of trade agreements.
Key Requirements and Definitions
- To seek duty concessions, importers must provide a certificate of origin for products from Free Trade Agreement (FTA) partners.
- According to the Department of Revenue's circular, proof of origin is defined as a certificate or declaration issued under a trade agreement, certifying that goods meet the country of origin criteria.
Importance of Certificate of Origin
The certificate of origin is crucial for exports to countries with which India has trade agreements.
- Exporters need to present this certificate at the landing port in the importing country.
- This document is vital for claiming duty concessions under FTAs, as it verifies the origin of the goods.
Impacts and Comments
According to Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), the customs circular introduces a well-defined mechanism and Standard Operating Procedure (SOP) for seamless verification of the certificate of origin's authenticity.
- This initiative aims to reduce uncertainty, increase simplification and transparency, and establish a robust mechanism to prevent misuse of the origin criterion.